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Demand Media Inc (NYSE:DMD)
EV/EBITDA
-6.15 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Demand Media Inc's enterprise value is $82.5 Mil. Demand Media Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2015 was $-13.4 Mil. Therefore, Demand Media Inc's EV/EBITDA ratio for today is -6.15.

During the past 8 years, the highest EV/EBITDA Ratio of Demand Media Inc was 9.60. The lowest was -6.20. And the median was 2.50.

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Demand Media Inc's stock price is $5.98. Demand Media Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2015 was $-2.19. Therefore, Demand Media Inc's P/E Ratio for today is .

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Demand Media Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=82.510/-13.419
=-6.15

Demand Media Inc's current Enterprise Value is $82.5 Mil.
Demand Media Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2015 was -2.113 (Mar. 2015 ) + -4.868 (Jun. 2015 ) + -6.812 (Sep. 2015 ) + 0.374 (Dec. 2015 ) = $-13.4 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Demand Media Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=5.98/-2.185
=

Demand Media Inc's share price for today is $5.98.
Demand Media Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2015 was -0.34 (Mar. 2015 ) + -0.73 (Jun. 2015 ) + -0.69 (Sep. 2015 ) + -0.425 (Dec. 2015 ) = $-2.19.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Demand Media Inc Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 0.000.000.000.000.002.463.802.50-0.35-5.38

Demand Media Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ev2ebitda 3.222.502.192.65-0.69-0.35-0.30-0.36-3.36-5.38
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